Captain Leafheart
Aroused member (still)
- Joined
- Apr 29, 2005
- Messages
- 1,443
Sorry if this has been posted already.
This came in on the news wires a little bit ago.
BC-CUBA-CIGARS/ 02-23 0420
BC-CUBA-CIGARS/
Cuban cigar sales drop amid global crisis
By Jeff Franks
HAVANA, Feb 23 (Reuters Life!) - Sales of Cuban cigars,
considered the finest in the world, dropped 3 percent to $390
million in 2008 as the world financial crisis and the spread of
anti-smoking laws cut demand, officials said on Monday.
The falling sales reflected a decline in the market for
luxury products in general as global economic worries mounted,
said Manuel Garcia, vice president of Habanos S.A., the
worldwide distributor of Cuban cigars.
Speaking at a press conference kicking off Cuba's annual
cigar festival, he said 2009 was likely to be a "very
complicated" year, but Habanos expected to maintain sales at
around the 2008 level.
Three hurricanes raked Cuba last year, including powerful
Gustav which cut through the heart of the island's prime
tobacco growing state of Pinar del Rio, but Garcia said they
had done minimal damage to tobacco supplies.
"Luckily, there was no effect on the harvest and there
continues to be sufficient raw material to meet demand," he
said. Thousands of tobacco curing barns were damaged by the
storms, but most were rebuilt in time for the curing season,
Garcia said.
Garcia said laws prohibiting smoking in public places had
gone into effect in various countries last year, including some
that are big customers for Cuban cigars.
Also, the number of worldwide airline passengers had fallen
by a reported 11 percent, he said, which slowed the "duty free"
market where Habanos sold about a quarter of its cigars.
He said the top global markets for Cuban cigars, which
include well-known brands such as Montecristo, Cohiba, Partagas
and Romeo y Julieta were, in descending order, Spain, France,
Germany, Cuba and Switzerland.
Due to the 47-year-old U.S. trade embargo against Cuba, the
communist-led island's cigars cannot be sold legally in the
United States, the world's largest cigar consumer.
New U.S. President Barack Obama has promised to ease, but
not eliminate the embargo.
If it were lifted, "it is probable that an opening of that
market would signify a great possibility and great potential
for our products," Garcia said.
Cuban cigars are so popular that Habanos, a joint venture
between Cuba and British tobacco giant Imperial Tobacco Group
PLC <IMT.L>, has about 70 percent of sales in its current
markets, said vice president of development Javier Terres.
He said an estimated 230 million to 250 million cigars will
be smoked in the United States this year.
(Edited by Jim Loney and Todd Eastham)
This came in on the news wires a little bit ago.
BC-CUBA-CIGARS/ 02-23 0420
BC-CUBA-CIGARS/
Cuban cigar sales drop amid global crisis
By Jeff Franks
HAVANA, Feb 23 (Reuters Life!) - Sales of Cuban cigars,
considered the finest in the world, dropped 3 percent to $390
million in 2008 as the world financial crisis and the spread of
anti-smoking laws cut demand, officials said on Monday.
The falling sales reflected a decline in the market for
luxury products in general as global economic worries mounted,
said Manuel Garcia, vice president of Habanos S.A., the
worldwide distributor of Cuban cigars.
Speaking at a press conference kicking off Cuba's annual
cigar festival, he said 2009 was likely to be a "very
complicated" year, but Habanos expected to maintain sales at
around the 2008 level.
Three hurricanes raked Cuba last year, including powerful
Gustav which cut through the heart of the island's prime
tobacco growing state of Pinar del Rio, but Garcia said they
had done minimal damage to tobacco supplies.
"Luckily, there was no effect on the harvest and there
continues to be sufficient raw material to meet demand," he
said. Thousands of tobacco curing barns were damaged by the
storms, but most were rebuilt in time for the curing season,
Garcia said.
Garcia said laws prohibiting smoking in public places had
gone into effect in various countries last year, including some
that are big customers for Cuban cigars.
Also, the number of worldwide airline passengers had fallen
by a reported 11 percent, he said, which slowed the "duty free"
market where Habanos sold about a quarter of its cigars.
He said the top global markets for Cuban cigars, which
include well-known brands such as Montecristo, Cohiba, Partagas
and Romeo y Julieta were, in descending order, Spain, France,
Germany, Cuba and Switzerland.
Due to the 47-year-old U.S. trade embargo against Cuba, the
communist-led island's cigars cannot be sold legally in the
United States, the world's largest cigar consumer.
New U.S. President Barack Obama has promised to ease, but
not eliminate the embargo.
If it were lifted, "it is probable that an opening of that
market would signify a great possibility and great potential
for our products," Garcia said.
Cuban cigars are so popular that Habanos, a joint venture
between Cuba and British tobacco giant Imperial Tobacco Group
PLC <IMT.L>, has about 70 percent of sales in its current
markets, said vice president of development Javier Terres.
He said an estimated 230 million to 250 million cigars will
be smoked in the United States this year.
(Edited by Jim Loney and Todd Eastham)
